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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 14 - INCOME TAXES

Income taxes were as follows for the years ended December 31:

 

 

 

2024

 

 

2023

 

 

2022

 

Current - federal

 

$

6,498

 

 

$

8,256

 

 

$

6,973

 

Current - state

 

 

246

 

 

 

68

 

 

 

152

 

Deferred

 

 

(1,853

)

 

 

(675

)

 

 

483

 

Income taxes

 

$

4,891

 

 

$

7,649

 

 

$

7,608

 

 

Effective tax rates differed from the statutory federal income tax rate of 21% in 2024, 2023 and 2022 due to the following:

 

 

 

2024

 

 

2023

 

 

2022

 

Income taxes computed at the statutory federal tax
   rate

 

$

7,681

 

 

$

10,629

 

 

$

9,878

 

Add (subtract) tax effect of:

 

 

 

 

 

 

 

 

 

Tax-exempt interest income, net

 

 

(1,975

)

 

 

(1,938

)

 

 

(1,666

)

Low income housing investments

 

 

(555

)

 

 

(620

)

 

 

(679

)

Cash surrender value of BOLI

 

 

(471

)

 

 

(233

)

 

 

(207

)

Other

 

 

211

 

 

 

(189

)

 

 

282

 

Income tax expense

 

$

4,891

 

 

$

7,649

 

 

$

7,608

 

 

Year-end deferred tax assets and liabilities were due to the following:

 

 

 

2024

 

 

2023

 

Deferred tax assets

 

 

 

 

 

 

   Allowance for credit losses

 

$

8,554

 

 

$

7,711

 

   Unrealized loss on securities available for sale

 

 

13,104

 

 

 

11,633

 

   Unrealized loss on minimum pension liability

 

 

1,198

 

 

 

1,198

 

   Deferred compensation

 

 

1,241

 

 

 

1,155

 

   Unfunded commitment liability

 

 

733

 

 

 

819

 

   Deferred loan fees, net

 

 

583

 

 

 

576

 

   Purchase accounting adjustments

 

 

524

 

 

 

135

 

   Accrued compensation

 

 

674

 

 

 

368

 

   Lease liability

 

 

231

 

 

 

343

 

   Other

 

 

74

 

 

 

287

 

Deferred tax asset

 

 

26,916

 

 

 

24,225

 

Deferred tax liabilities

 

 

 

 

 

 

   Fixed assets depreciation

 

 

(1,968

)

 

 

(2,198

)

   Prepaid pension

 

 

(1,602

)

 

 

(1,343

)

   Loan servicing rights

 

 

(624

)

 

 

(634

)

   Discount accretion on securities

 

 

(244

)

 

 

(502

)

   FHLB stock dividends

 

 

(126

)

 

 

(223

)

   Right of use asset

 

 

(231

)

 

 

(343

)

   Prepaids

 

 

(297

)

 

 

(314

)

   Other

 

 

(143

)

 

 

(311

)

Deferred tax liability

 

 

(5,235

)

 

 

(5,868

)

Net deferred tax asset

 

$

21,681

 

 

$

18,357

 

At December 31, 2024, the Company had no net operating losses subject to Section 382 limitations. As of December 31, 2023, the Company had $30 in net operating losses subject to Section 382 limitations. No valuation allowance was established at December 31, 2024 and 2023, due to the Company’s ability to carryforward net operating losses to taxes paid in future years and certain tax strategies, coupled with the anticipated future income as evidenced by the Company’s earning potential.

There is currently no liability for uncertain tax positions and no known unrecognized tax benefits.

The Company’s federal tax returns for taxable years through 2019 have been closed for purposes of examination by the Internal Revenue Service.